Families come in all shapes and sizes, and they get made in different ways, too. Building a family is exciting, but it can be expensive. Whether you’re covering pregnancy-related expenses or taking a less traditional path, one way you can cover those costs is through a family planning loan. Let’s explore some of the advantages of using a personal loan for family planning.

What Is a Family Planning Loan?

A family planning loan is a type of personal loan that’s used for costs related to adoption, IVF, extracting and freezing eggs, surrogacy, and other pregnancy-related expenses.

Like other personal loans, a family planning loan is a type of installment loan, meaning you’ll borrow a set amount of money and repay the loan in a certain number of payments.

Personal loans are usually unsecured with a fixed interest rate, although you can find lenders that offer secured or adjustable rate options.

How Can a Family Planning Loan Help Me?

In many cases, health insurance benefits and grants may not cover the full cost of bringing a new person into your family.

Not all health insurance covers IVF. When it does, it rarely covers the entire cost or the multiple rounds of treatment many women need. Grants can help, but you’ll have to qualify and be approved. Single adults and some couples may struggle to qualify more than others.

A family planning loan puts control back in your hands. If approved, you’ll receive funds from your lender within a week and can start using them the way that best fits your needs. You’ll have the freedom to choose the process, doctors, and facility you want to work with.

Should I Use a Personal Loan to Cover Family Planning Costs?

There are lots of ways to cover the costs of growing your family. You’ll need to consider factors like your income, credit score, and existing debt before you can pick the right way for you. That being said, personal loans do offer some advantages over other forms of financing.

Personal Loans vs. Other Financing Options for Family Planning

Savings

With no fees or interest, savings are the least expensive way to pay for something. Unfortunately, this may be unrealistic for many families. Plus, depleting your savings leaves you vulnerable financially, while a personal loan lets you spread out costs in a manageable way.

Credit Cards

Credit cards are flexible and easy to get approved for, but their main drawback is the high cost. As of October 2023, the average interest rate on a credit card is 24.12%, while the average interest rate on a personal loan is almost half that at 11.52%.

You’ll save money in most cases by using a personal loan when borrowing large amounts of money for longer periods of time.

Another downside to credit cards is they can be hard to pay off. Credit card debt can grow quickly, and many people have to stick to a payoff strategy to get out from under them. A personal loan has a built-in strategy for payoff.

Clinic Financing

Some fertility clinics offer in-house financing, but your options can vary substantially from clinic to clinic. Typically, loans range from $5,000 to $50,000 with interest rates between 0% and 24.99% based on how much you’re borrowing, your credit score, and the loan’s term. Terms usually range from 24 to 60 months. You may also be charged administration and origination fees, and may be require to make a down payment as well.

What Can a Family Planning Loan Be Used For?

All the research in the world won’t give you a perfect estimate of what it will cost to expand your family. That’s because each situation is unique with lots of variables. The beauty of a personal loan is flexible affordability no matter how you choose to bring your new loved one home.

IVF

On average, a single cycle of IVF can cost between $14,000 and $20,000. A personal loan for family planning can help you cover:

• Fertility medications
• Egg extraction
• Egg or sperm donation
• Preimplantation genetic testing
• Additional services to enhance effectiveness such as assisted hatching
• Anesthetics and other medical aids that may not be covered by insurance

Egg Freezing

Egg freezing can extend your timeline to become a parent, but it comes at a cost. A single cycle of egg freezing can cost between $4,500 and $8,000 with most patients requiring one or two cycles. Patients will also need to pay $4,000 to $6,000 for injectable medication and around $500 per year for egg storage.

Surrogacy

Surrogacy involves extra costs that other paths to parenthood don’t entail. These costs add up quickly, with the average cost of surrogacy in the U.S. ranging from $100,000 to $200,000. Some costs you might have with this route include:

• Surrogate compensation and expenses
• Legal fees
• Agency fees
• Medical expenses
• Insurance or medical risk management policies

Pregnancy-Related Expenses

Insurance may not cover all of your prenatal and childbirth-related expenses. You can use your family planning loan to cover:

• Unpaid family leave
• Copays and deductibles
• Prenatal testing
• Midwives and/or doulas
• Additional costs for a private room
• Labor medication like an epidural

Unexpected Medical Expenses

There are plenty of things you expect to pay for when having a baby, but sometimes there are unexpected costs, too, especially if you or your child are medically fragile. Our family planning loan can help you cover costs like:

• Prenatal visits with specialists
• Diagnostic tests
• Additional ultrasounds
• Additional care for premature birth
• Lactation consultations
• Various fees such as nursery or lab fees or fees for medications

Adoption

Adopting a child from state foster care is one of the least expensive ways to bring a new member into your family. Often adoption costs are covered by the state and there are few or no fees. Working with a private agency can raise your costs from between $5,000 and $40,000. Another option is to work directly with a private attorney, which could cost anywhere from $8,000 to $40,000.

Beyond agency and legal fees, a personal loan can help you cover practical costs like:

• Travel to connect with your child
• Setting up a bedroom
• School fees and uniform costs
• Tutoring or learning aids
• Counseling or medical expenses including vaccines

The Takeaway

Finances shouldn’t get in the way of your path to parenthood. A personal loan can offer the low cost and flexibility you need to become a parent (or become a parent again!) while preserving your financial peace of mind.